I picked A and here is my 2 cents.
First, this one asks about “supporter assumption
The form of this question is like:X is not Y
Because of A, X should be YThe assumption is: A requires X to be Y. For example:
In the past, almost CEOs in company X did not hold an MBABecause of the new hiring rules
, all CEOs in company X should hold an MBA.
==> Assumption: new hiring rules require all CEOs applicants to hold an MBA.
If we negate
this assumption: new hiring rules require all CEOs applicants NOT
to hold an MBA ==> Conclusion “all CEOs should hold MBA” fails.
Back to this question. ANALYZE THE STIMULUS:
TVA is not privately-owned, for profit business companyBecause of current pro-business climate
in the region, TVA should be privatized.Assumption should be:
the current pro-business climate requires TVA to be privately-owned, for profit business companyANALYZE EACH ANSWER:
A) A pro-business climate demands the private ownership of utilities.Correct.
As stated above.
B) New Deal programs are outdated and should be discontinued.Wrong.
Even the New deal programs would be discontinued, TVA is still under Federal control
C) Electricity in the Southeast will be more efficiently distributed if utilities are privately owned.Wrong. TEMPTING, but wrong.
Please note that the argument does not say TVA is distributing electricity NOT efficiently.
D) The price of electricity is currently higher than it would be if TVA were privatized.Wrong.
D actually assumes electricity prices would be lower if TVA were privatized. However its logic is wrong because:(1) TVA is the government-owned
company now, so Government should back up
its financial problems, TVA does not have to raise prices
to get more profit. However, if it were privatized
and would be for-profit company
, why TVA lower prices? It does not make sense
(at least in practice). In addition, if prices would be lower,
assume you were an investor
, your motivation is profit, should you buy TVA?
==> Therefore, D is not "Must Be True" assumption. (2)
Assumption is the foundation of the conclusion, do not assume too far.
The answer “could be true” is always correct. Please make sure the assumption is MUST be true. No Assumption ==> No conclusion.
E) Most residents of the Southeast prefer that TVA enter private ownershipWrong.
The fact “residents prefer….” is not relevant and does not help maintain the conclusion.
Waiting for OA.
Please +1 KUDO if my post helps. Thank you.
"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."
Chris Bangle - Former BMW Chief of Design.